BEIJING: Iron ore futures prices rebounded on Monday to hit their highest in nearly two weeks, supported by a softer dollar and prospects of steel demand picking up in the coming peak construction season in top consumer China.

The most-traded January iron ore contract on China’s Dalian Commodity Exchange (DCE) ended daytime trade 3.45% higher at 750.5 yuan ($105.40) a metric ton, hitting the highest since Aug. 13.

The benchmark September iron ore on the Singapore Exchange climbed 4.4% to $100.3 a ton, as of 0715 GMT, also marking the highest since Aug. 13.

The dollar hovered near an eight-month low, after US Federal Reserve Chair Jerome Powell’s dovish remarks on Friday reinforced expectations of an interest rate cut in September. A weaker dollar makes dollar-priced commodities less expensive for buyers using other currencies.

“The prospect of easing monetary policy boosted sentiment across the commodity complex,” ANZ analysts said in a note. A marginal improvement in fundamentals also supported prices of the key steelmaking ingredients, although more equipment maintenance by Chinese steelmakers after losses widened remained a headwind, said analysts.

Supply-side pressure eased a bit with lower domestic output amid falling ore prices, while expectations of improved downstream steel demand in the coming month beefed up, analysts at Sinosteel Futures said in a note.